Spots N Dots
The Daily News Of TV Sales
September 21, 2017
TV COMPANIES UNPREPARED FOR ADVANCED TV
CHALLENGED TO SELL MULTICHANNEL ADS
More targeted advertising, referred to as Advanced Television, is opening up a $100 billion opportunity by 2030, according to analysis by Credit Suisse, but TV companies and ad buyers don’t necessarily agree on how it is going to roll out. And some of the people involved admit they are just confused.
A wide-ranging survey of TV media executives and agency media buyers by broadcast and digital management software company SintecMediahas produced a report titled The Future of Television, claiming to provide a blueprint for data driven media sales. It had questioned those execs about the future of TV, problems facing media companies, and how media companies plan to manage advanced TV advertising and delivery. The study includes results from a survey in partnership with MediaPost, as well as interviews with executives from media companies including Charter Spectrum Reach, Hulu, Scripps Networks Interactive and Turner.
The study finds that 59% of all TV media companies rely on homegrown technology to sell their inventory, a fact that will make it difficult for companies to adapt as Advanced TV forces new technology and process into the advertising organization. The study also finds that TV media executives believe that their companies are unprepared for changes. Less than one third, 31% believe that their company has what they need to sell digital and linear TV in a single streamlined process.
Additionally, TV media executives are not aligned with media buyers about several key advanced TV elements. While TV executives believe that TV ratings metrics will become the standard for multichannel and advanced TV advertising, agencies believe that the impression will become the significant metric. What’s more, TV companies feel confident that the TV department will take on more digital sales while agencies believe that digital will take on more TV sales. “TV companies and digital companies are both vying for advanced TV market share, with widely varying business models,” said Lorne Brown, CEO SintecMedia.
The study finds that demand for advanced TV inventory is founded on fast transactions, easy delivery and big scale. Technical and organizational friction within TV companies creates barriers that could frustrate media buyers looking for easy ways to buy audience-targeted campaigns from TV companies, potentially giving digital companies like Facebook and Google a window of opportunity. SintecMedia’s research shows that TV companies are, however, in a good position to grab market share in Advanced TV if they can overcome technical and operational hurdles quickly.
The full report is available HEREin a 22-page pdf.
ADVERTISER NEWS
After exploring possible combinations with cable companies and getting nowhere, Sprint has started negotiations with T-Mobile, according to CNBC. NewsCorp’sNew York Post adds it’s already been agreed T-Mobile controlling shareholder Deutsche Telekom would be the majority owner and T-Mobile CEO John Legere would run the company if the deal is made. The companies came close to a deal three years ago but backed off due to fears regulators wouldn’t approve, but as we reported last week, the FCC has just issued a finding there is “effective competition” in wireless now, which could pave the way for such a deal this time……Ford is cutting production at five North American plants to eat into the inventory of unsold vehicles on dealers’ lots. The moves are mostly in factories that build cars like the Fiesta and Fusion. “We are continuing to match production with consumer demand,” a statement from the company said…… Kohl’s is expanding its new relationship with Amazon and will accept returns of products sold by Amazon, starting with 82 stores In the Chicago and Los Angeles markets. The two had announced earlier this month that the bricks-and-mortar retailer would sell Amazon devices including the Echo at some of its stores……Bed Bath & Beyond reported a net sales decrease of 1.7% and a comp store decrease of 2.6% for its fiscal second quarter. We can expect a number of companies to cite the hurricanes as part of the reason for soft numbers, and BB&B does say Harvey impacted its results (Irma came after the quarter closed). Company banners include Christmas Tree Shops and Harmon……Most of the major food companies have been having a tough time in recent quarters, and General Mills is no exception. In its fiscal first quarter, North American retail sales were down 5% with declines in volume, price, and mix. Yoplait yogurt sales were down double digits…… We reported last week the CEO at J.M. Smucker had said manufacturers need to get more out of their core brands, and in line with that Smucker is introducing six new flavored Folgers Simply Gourmet flavored coffees. 10-ounce packages will be available in selected markets, suggested price at $5.99…… With Toys ‘R’ Us having now filed for bankruptcy protection, what had been expected to be a very price-oriented holiday season for toys will likely become even more so, according to retail consultancy GlobalData. While vendors have been reassured (they’d be first in line to get paid), TRU customers may be reluctant to buy gift cards or a high-price item with a warranty—and the best way to combat that will be with low prices.
NETWORK NEWS
Deadline.com reported last night that Dick Wolf, who has five drama series on NBC, has received a 13-episode order at CBS for a new procedural drama slated for launch during the 2018-2019 season. It will be Wolf’s first drama series to launch on a network other than NBC in 15 years, since the 2003 Dragnet reboot on ABC. The new series, tentatively titled F.B.I., will chronicle the inner workings of the New York office of the Federal Bureau of Investigation.....CBS has put into development a multi-camera comedy called Quality of Life. The project comes from Jamie Lee Curtis, Janis Hirsch (Till Death), Eric and Kim Tannenbaum and CBS Television Studios. Curtis is set to star in the project as well as serve as a producer. She will also co-write the script along with Hirsh. Quality of Life is described as a multi-generational sitcom about a family-run funeral business and the unique perspective that growing up in a funeral home gives you……Two more drama projects from Lee Daniels (Empire, Star) have been put into development by the Fox Network. A put pilot commitment has been given to Victory, written by Julian Breece(Hulu’s The First). Victory is set in the world of competitive gospel choirs and tell the inspirational story of a prodigal son and group of forgotten young people who must rise above their personal hardships. Using the power of song, the group fights to save a church and heal a broken community. Breece and Daniels recently sold the drama project Mason Dixon to Fox. The second project called East of Hope is from Outsiders creator Peter Mattei. East of Hope is a multi-racial soap set in an All-American working-class town. The story centers on two families divided by a past event and reconnected by blood. Both families tie their hopes and dreams to the high school basketball team, which they see as a path to a better life……Telemundo is set to make rating history after a blockbuster summer. The network is ending the 2016-2017 broadcast season as the No. 1 Spanish-language television network in the weekday 8 PM – 11 PM (ET) primetime among the highly-coveted adults 18-49 and adults 18-34 viewers, according to Nielsen. Telemundo surpassed both Univision and Unimasin both demos and ranked among the top five broadcast networks along with NBC, ABC, CBS, and Fox. It also outperformed all cable networks, except for ESPN, in the key demos. Telemundo has positioned itself as the only network that offers high-quality content across all platforms made specifically for Hispanics living in the United States……A report in AdAgesays that some media buyers are reporting they have purchased spots in the ABC reboot of American Idol for $200,000 for a 30-second spot. Also, the report says that the ads are being booked for Sunday and Monday nights. The AdAgereport said that at least one media buyer is expecting the new American Idol to generate a rating like NBC’s America’s Got Talent which has been delivering about a 2.6 demo rating for the summer. ABC has not said what nights it plans to run the new American Idol when it debuts in the spring, and a spokeswoman for the network declined further comment.
DELOITTE HOLIDAY FORECAST
Consulting/advisory firm Deloitte is forecasting a healthy 4-4.5% increase in retail holiday sales (based on the full three-month period from November, 2017 to January, 2018). That would be a healthy increase over the period from November 2016 to January 2017, in which sales were up 3.6% according to Commerce Department analysis. Deloitte is also forecasting an 18-21% increase in e-commerce sales for the holidays after a 14.3% increase in the prior year. “The projected uptick in holiday sales ties to four primary factors affecting consumer spending, starting with strong personal income growth,” Deloitte’s senior U.S. economist said. The others are consumer confidence remains high, the labor market is strong, and the personal savings rate should remain stable at its present low level (meaning people are more likely to spend than save).
BUSINESS BYTES
- There is good news and bad news in the banking industry, as mortgage rates have generally softened during the third quarter. The good news: There’s more demand for mortgages and refinancing, as the Mortgage Bankers Association index of home-purchasing is up 10.9% for early September and refinancing is up 8.9%. The bad news, according to The Wall Street Journal, is that refinancing brings about early repayment of mortgage-backed securities, and if banks reinvest those holdings, they will do so at lower rates. That’s going to cut down on some banks’ third-quarter earnings, especially big mortgage lenders such as Bank of America and Wells Fargo.
- Volvo, the Swedish carmaker that been owned by a Chinese company since Ford sold it in 2010, has been building a plant in South Carolina since 2015 and even before the new plant is completed, the company has changed plans and will now double its size and production capacity. Volvo is in the midst of a fourth straight year of record global sales and Automotive News reports the plant expansion is “a vote of confidence in Volvo’s sales momentum.” Although U.S. sales are down so far this year (Volvo says it will make it up by the end of the year), worldwide Volvo sales are up 8.7% and it’s projected about 60% of the vehicles built in South Carolina will be exported.
- The Motley Fool comments Costco’s business model isn’t what you think it is—in fact, it’s not terribly important if members actually buy anything. In many ways, Motley Fool says, Costco operates like a gym—it sells memberships knowing many members won’t show up. Like most gym customers that don’t show up, Costco members are lured by the prospect of saving money and even if they do not do that often, they renew thinking they’ll do it more in the future. Costco makes about 75% of its profits from membership fees, and most of the remaining profit comes from its best customers (Executive members at $120 per year, about a third of all members but about two-thirds of sales). Gold Star memberships for others costs $60 yearly.
NFL SEASON - A SLOW START
The Hollywood Reporter says CBS, ESPN, Fox and NBC will generate about $2.5 billion in NFL advertising revenue this season, but a shortfall in ad dollars could translate to a $200 million cut in earnings, an analyst estimates.
Sports Illustrated did a full report on the early-season woes. Through the first two weeks of the season, CBS’s Sunday NFL games averaged 13.9 million viewers, down 10% versus 15.2 million last year. Sports Media Watch said CBS’s 8.4 rating for its Week 2 single header lineup was the lowest for a Week 2 single-header since at least 1998.
NBC had a particularly rough night with the Packers-Falcons game, which drew 20.2 million viewers, well down from last year’s Week 2 game (Packers-Vikings, 22.8 million) and the Seahawks-Packers in 2015 (26.4 million). It was the least-watched Week 2 Sunday Night game since 2008.
Fox was aided by a massive number for the Cowboys- Broncos game—26 million viewers—thanks to a lightning delay that took the game’s conclusion past 8:00 pm. ET. But that number was down from 2015 when the Cowboys- Eagles in the national window drew much higher.
The most positive NFL ratings story so far comes from the NFL Network. The cable net’s opening game, Texans- Bengals was up 2% in viewership.
AVAILS
WCMH-TV, NBC4 in Columbus, OH, America’s greatest city, is looking for a General Sales Manager to lead the efforts of a talented sales team and take our teams performance into the future of Next-Gen TV. The GSM will ensure goal achievement through planning, setting systems for success, including arranging targeted training and accountability to generate positive results and raise the level of the team’s proficiency. CLICK HEREfor more info or to apply now. EOE M/F/D/V ~ Background check screen required.
CBS 5 and 3TV in Phoenix is looking for Account Executives to join their successful sales team. We need dynamic, motivated individuals who will present, develop, manage and solicit new and existing business accounts. The Account Executive will assess the market and meet with local businesses and learn about their marketing and advertising needs. You will achieve assigned revenue goals through sale of airtime, digital or other products and services. Please CLICK HEREto apply now. EOE.
Digital Sales Manager: KSAT and KSAT.com, the ABC affiliate and media website in San Antonio seeks an integrated media solutions leader. Candidates must have the ability to excel in a collaborative environment with a driven team of managers working toward a common goal. If you are a proven sales leader ready for your next step, prepare your best pitch and submit your resume showcasing your skills and qualifications to Ashley Parker, GSM: . No calls please. EOE.
Are you interested in working in the “It City” of Nashville, TN? WKRN, Nashville’s fastest growing television station and #1 News website, is actively searching for an account executive to implement marketing strategies, develop new business and grow market share on existing accounts. WKRN is home of the CMA Awards on ABC, the Tennessee Titans Pre-Season, as well as the Nashville Christmas Parade, the local 4th of July and New Year’s Eve celebrations. CLICK HEREto apply now. EOE.
The FOX affiliate in Kansas City, WDAF Fox4, seeks an experienced and highly motivated Multi-platform Account Executive to grow our core broadcast business, interactive platforms and digital TV. The AE must develop new business across all platforms. The AE will negotiate rates, prepare and present avails and sales packages to agencies and direct advertisers. Use of Wide Orbit, Excel, Microsoft Word, Power Point and other technology is a plus. Media sales experience and college degree preferred. CLICK HEREto apply (job # 2017-46257). EOE M/F/D/V
FOX35 O&O WOFL / WRBW Orlando and WOGX Gainesville are looking for results-driven Account Executives to join our all-star team! If you have a proven track record in growing revenue, managing an established account list and have experience in closing custom multi-media packages, we want to hear from you! Experience with new business development preferred. If you thrive in a team environment, are detail-oriented, ambitious, and motivated by the win CLICK HEREto apply. EOE/M/F/ Veteran/Disabled.
If you’re thinking of getting into an exciting and lucrative industry, we may have the opportunity for you. THE KUBE / TV 57 – Houston’s fastest growing television station is looking for Sales Associate. We want positive, self-motivated, passionate person that want to join a highly motivated sales team and enjoy being part of a growing company. Prior media experience in TV, radio or cable is not required. Send your resume, references and a cover letter explaining why you’re the right candidate to . EOE.
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SPOTS N DOTS
The Daily News Of TV Sales
September21, 2017
Phone: 888-884-2630